Delaware Deductions from Pay laws & HR compliance analysis

Delaware Deductions from Pay: What you need to know

Under Delaware law, the only deductions an employer can make from employees' wages are those deductions that are (DE Code Tit. 19 Sec. 1107):
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• Required by law, such as withholdings for federal, state, and local taxes; Social Security (FICA); and court-ordered garnishments;
• Authorized in writing by the employee for a lawful purpose that accrues to the benefit of the employee, such as insurance premiums. The state Department of Labor (DOL) may, by regulation, prohibit a deduction in the public interest; and
• For medical, surgical, or hospital care or service, without financial benefit to the employer, and are openly, clearly, and in due course recorded in the employers' books.
An employer may request that a deposit be paid for employer property provided to an employee. If the deposit is deducted from the employee's wages, the full amount must be deducted by the first regular payday following the issuing of the property to the employee. The deposit must be returned to the employee when the property is returned to the employer.
Deductions for cash advances or charges for goods and services are permitted, but only if there is a written agreement, signed by the employee, that specifies the amount owed and the repayment schedule.
An employer may not deduct or withhold wages for:
• Cash or inventory shortages, including shortages that occur because of a failure to follow proper credit card, check cashing, or accounts receivable procedures
• Damaged property
• Failure to return the employer's property
Employers with more than three employees must give each employee a statement (either on the check, by a separate slip, or electronically) showing the wages ...

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